tag:blogger.com,1999:blog-35445195055375931562017-11-07T08:41:28.496-08:00UK Debt HelperDebt Blog For People Living In The UK And Looking For General Information About Debt. For Debt Advice Please Speak To A Debt Charity.Debt Advisorhttp://www.blogger.com/profile/10379071258951732801noreply@blogger.comBlogger73125tag:blogger.com,1999:blog-3544519505537593156.post-78733792445950676922012-06-26T09:21:00.002-07:002012-06-26T09:21:53.576-07:00Son Died from Payday Loans<br /><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">I read this in the Sun and felt it required read by all.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;"></div><h3 style="line-height: 20px; margin: 0px; padding: 0px;">THE devastated parents of a teenager who committed suicide have said the 18-year-old took his life because of the spiralling debts he owed payday loan companies.</h3><br /><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Now Geoff and Dawn Scott are calling for a cap on sky-high interest rates charged by lenders such as Wonga.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Bright IT apprentice Oliver — known as Ollie to his mates — committed suicide in September, seven months after admitting to his family he had become addicted to gambling at bingo halls.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">To fund his habit, Ollie used his smartphone to access a series of quick-fix loans — some with interest as high as 4,214 per cent — with the money in his account in less than 30 minutes.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;"><i style="margin: 0px; padding: 0px;">His mum Dawn said: “I think you’re not mature enough at 18 to borrow. Kids with computers and iPhones can just touch a button. It’s not real.</i></div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“When I wanted a loan for a car when I was starting off I went and saw a bank manager.”</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Ollie — who was a popular and exceptionally clever lad, passing at least 14 GCSEs — took loans out with payday loan providers Wonga, Cash Genie and Toothfairy Finance.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">But tragically the repayments became too much and he was killed after being hit by a train.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Interest accumulated so fast that Geoff and Dawn, of North Stifford, Essex, still don’t know the true extent of Ollie’s debt, although Geoff paid off almost £4,000 while his son was alive and demands totalling more than £2,500 have arrived since his death.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Payday lenders offer anything up to £1,000 a time without the need for a full credit check. The recession has led to a boom in the sector as Brits struggle to meet day-to-day living costs.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Geoff, who works as a chauffeur in London, said: “I could not believe someone with his intelligence would do this.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“Oliver was not an idiot. This is someone who could explain everything about APR and interest rates to you.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“All he used to say to me was: ‘It’s just like pressing a button. It’s not real money.’ When you fall into that trap there is no way out.”</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">After Oliver’s tragic death letters addressed to him arrived from different payday lenders and debt collection agencies. They included a bill from Toothfairy Finance, dated September 17, totalling £866, and a demand from Cash Genie for £125.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Geoff had to then fax a copy of the coroner’s statement to these companies.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">The couple, who have two younger children, believe Ollie’s death highlights the dangers that these loan companies pose to a computer-savvy generation where cash is just a touch-screen away. Both believe the Government should insist on capping interest rates.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Geoff said: “The Bank of England base rate is just 0.5 per cent, a mortgage could be up to five per cent and a credit card 19 per cent.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“So how did someone come up with 4,200 per cent and authorities agree it legally? That’s what I’m annoyed at.”</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Childminder Dawn added: “Ollie was on a computer from an early age. He found it so easy and was very intelligent. The kids of today, it’s not real to them.”</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Last week we reported that Wonga have been told to clean up their act after being slammed by the Office of Fair Trading for harassing borrowers.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">When asked about Ollie’s death, Wonga said: “We were greatly saddened to hear of Oliver’s passing and our hearts go out to his family.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“We don’t know the full circumstances surrounding this tragedy, but we can confirm he was a customer and that all loans were settled.</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">“The last loan repayment has since been refunded and we closed the account as soon as we were made aware of the situation.”</div><div style="font-family: arial, helvetica, sans-serif; font-size: 14px; line-height: 18px; margin-bottom: 18px; padding: 0px; text-align: left;">Peter Tuvey, managing director of Cash Genie, said: “Cash Genie adheres to a lending policy which includes strict lending criteria such as detailed credit reference checks and financial assessments. We also have a dedicated financial solutions team should any client fall into financial difficulty.”</div>Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com21tag:blogger.com,1999:blog-3544519505537593156.post-1791251402941913362012-06-25T06:46:00.001-07:002012-06-25T06:46:14.564-07:00Lloyds Recent Debt Report<br /><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">As we approach the Queen’s Diamond Jubilee, new research by&nbsp;Lloyds TSB&nbsp;has looked at the key developments in the UK savings market over the past 60 years. The analysis starts a year before the coronation of Queen Elizabeth II at a time when the country was recovering from World War II and some rationing was still in place.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Key headlines:&nbsp;</div><ul class="releaseul" style="border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; list-style-type: none; margin: 0px 0px 1em; padding: 0px;"><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">464% rise in the real value of UK household savings over the past 60 years.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Savings&nbsp;now stand at an average of over £150,000 per household, including pensions, investments and deposit savings, compared with just below £50,000 in 1951 (at today's prices).</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Many, however, have little or no savings.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Household savings recorded their biggest rise in value in the 1980s. Whilst savings fell in the 1970s in inflation adjusted terms.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Deposit savings' share of total savings has fallen from 42% to 29% since 1951. Pensions and life insurance's share has more than doubled from 24% to 53%.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Households have saved an average of 6% of their net income since the 1950s.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">The gross interest rate offered on no notice accounts has averaged 6.01% over the past 60 years. In real terms, savings rates averaged 0.29%.</li><div style="padding: 4px 0px;"></div><div style="padding: 4px 0px;"></div><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">Savers clubs to investments funds: there have been significant changes in the UK’s savings habits.</li></ul><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;"></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Suren Thiru, economist at Lloyds TSB, said:<br />"The UK savings market&nbsp;has undergone some extraordinary changes over the past 60 years, reflecting the changing way we live our lives. Today, the typical saver is very different compared to the 1950s with the vast majority of savers now viewing their nest egg as an investment rather than as something for a rainy day. This change in attitude is partly as a result of the substantial growth in personal wealth over the period.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Looking forward, savings levels are likely to continue to increase as households look to improve their finances. Furthermore, an increasingly ageing population is expected to save more in the future due to the need to put more aside for retirement."</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Total household savings<br />The value of household savings – including pensions, shares and deposit savings – in the UK has risen by 464% in real terms1 over the past 60 years. This is equivalent to an average annual rate of growth of 2.9%, comfortably outpacing the 1.6% per annum average rise in real earnings over the period.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">UK household savings now stand at £4,177 billion, representing a nearly six-fold increase from £741 billion in 1951. In per household terms, average savings have increased more than three-fold from £49,511 to £153,529 (in 2011 prices).</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">There are, however, considerable differences in the value of savings with some UK households holding little or no savings. Almost one in three (30%) UK households have no savings (accounts and investments) and a further 19% hold savings of less than £1,5002. Household savings recorded their biggest rise in value in the 1980s with a real increase of 115% between 1981 and 1991. The substantial rise in the value of pensions and life insurance held by households, caused in part by the changes to private pension provisions, was a key driver behind the strong erformance of household savings during the decade.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">In contrast, the worst performing decade for real household savings was the 1970s when there was a 12% fall as high inflation eroded the value of savings.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Over the ten years to 2011, real household savings rose by 7%; the second worst performing decade over the past 60 years.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">From Christmas clubs to investment funds: our changing savings habits In the 1950s, savings activity by UK households was mainly focused on saving for a special occasion as evidenced by the popularity of savers clubs, such as Christmas clubs and holiday clubs, and the greater use of organisations such as National Savings Committees.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Although these clubs offered no interest, households saved an average of 2 shillings and 11 pence a week in savers clubs in 19573, more than a fifth (21%) higher than the 2 shillings and 5 pence of savings made through the purchase of savings certificates and sums deposited in savings banks.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Today, most households view savings as an investment in order to smooth future consumption with funds now most commonly held in financial institutions. This is reflected in the increasing popularity of&nbsp;ISAs&nbsp;. Since their introduction in April 1999, the number of&nbsp;cash ISAs&nbsp;has risen by 160% to reach 11.9 million in 2010/11. There have also been marked changes in how we save with a large share of savings transactions taking place remotely (i.e. online, by phone or by post).</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">The rise of the single saver 60 years ago, savings was very much a family affair with men, typically seen as the main breadwinner, contributing most to household savings. The rise in both one-person households4 from less than one in five households (19%) in 1971 to one in three (33%) in 2011 and greater personal wealth has led to greater independence when making savings<br />decisions.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Women now save more<br />In the 1950s, women earned significantly less than their male counterparts therefore limiting<br />their ability to contribute to the family savings pot. Today, female savers in the UK have an average savings balance equivalent to 40% of their gross annual earnings, almost double the proportion of earnings saved by men (23%).</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Savings instruments<br />The value of deposit based savings6 has nearly quadrupled (up by 290%) in real terms over the past 60 years; from £312 billion in 1951 to £1,218 billion in 2011 (in 2011 prices).</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">However, deposit savings' share of the value of total household savings in 2011, at 29%, was nearly one-third lower than its 42% share in 1951.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">The 1980s saw deposit savings decline as a proportion of total household savings, falling from 40% in 1981 to 29% in 1989. This decline continued into the 1990s as interest rates started to fall, so that by the end of the millennium, deposit based savings accounted for less than a fifth (19%) of total household savings.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">However, over the past decade, deposit savings' share of total household savings has rebounded, reaching 29% in 2011. The popularity of ISAs and the significant decline in equity prices have contributed to the rising share of deposit based savings over the past ten years.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Among the non-deposit savings instruments, pensions and life insurance assets' share of total household savings has more than doubled over the past 60 years from 24% in 1951 to 53% in 2011. The changes to private pension provisions in the 1980s was a key driver of the rise, helping to lift pensions and life insurance's share of total household savings from 33% in 1979 to 48% in 1989.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">In contrast, the poor performance of equity markets over recent years has shrunk the value of equity savings. As a consequence, equities have fallen as a proportion of total household savings from 23% in 2000 to 13% in 2011.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Proportion of income saved<br />Households have saved an average of 6.2%8 of their net income over the past 60 years. The household saving ratio was highest in the 1970s – at an average of 8.9% between 1971 and 1981 – and lowest during the 1950s (average of 1.2%).</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">In 1951, the household saving ratio was negative, at -2.0%, and remained below 2% for the remainder of the decade. The proportion of income saved by households grew strongly through the 1960s and 1970s as interest rates increased to combat high inflation, reaching a 60 year high of 12.2% in 1980 with official interest rates at 14%.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">The consumer debt boom and relatively low interest rates that characterised the 'noughties' saw the household saving ratio decline during the 2000s to a low of 2.6% in 2007. The saving ratio has recovered since 2007 to reach 7.4% in 2011 as households have sought to bring their finances onto a sounder footing.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Households save more during recessions<br />The historical peaks in the saving ratio have been during, or very close to, periods of recession. The household saving ratio reached a 60 year high of 12.2% in 1980 when the UK economy was in recession.</div>Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com20tag:blogger.com,1999:blog-3544519505537593156.post-6235702722732924222012-06-25T06:44:00.001-07:002012-06-25T06:44:51.571-07:00Landlords Told to Minimise Risk for Students<br /><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">As research reveals that the number of tenants seeking help with rent arrears, affordable property developer&nbsp;FreshStart Living&nbsp;reveal 10 steps for landlords and&nbsp;buy to let property&nbsp;investors to take to lower the risks involved with late rental payment.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Debt charity, the Consumer Credit Counselling Service recently revealed that more than 10,000 people asked the charity for help with rent arrears in 2011 – a 27% increase on 2010.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">According to a recent buy to let index, in March 8.7% of all rent was late or unpaid and an average of 94,400 tenants were more than 2 months behind with their rent payments.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Affordable property developer FreshStart Living is urging landlords and&nbsp;buy to let property&nbsp;investors to take actions to minimise the risks to avoid the problems that late rental payments can cause.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">FreshStart Living has compiled a list of ten steps for landlords and buy to let investors to take in order to lower the risk of having to take legal action against tenants.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">1. Keep on track of tenants’ financial situations – If they have a habit of missing payments, ensure that your arrange a date each month when they are guaranteed to have the money ready. This could be the day after pay day.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">2. Chasing the rent arrears – Establish a firm rent chasing timetable including letters before legal action, telephone scripts, serving notices etc, and make sure that that all staff are aware of these procedures.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">3. Get the right tenant – Work with a good tenant referencing partner and don’t cut corners in the checking procedures.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">4. Is the Tenancy Deposit correctly placed? The changes in legislation under the Localism Bill took effect in April, and we have heard of solicitors acting for tenants on a no win-no fee basis to catch out landlords and agents if they haven’t complied with the regulations.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">5. Guarantors agreements – Buy to let investors need to ensure that they maintain up-to-date contact details for Guarantors so that they can copy them in on all correspondence you send to the tenants regarding their late/overdue rent. This helps apply additional pressure to the tenants to pay.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">6. Is your procedure for serving Section 21 notices compliant? Last year it was reported that 70 per cent of notices were thrown out of court because they were wrong. More landlords are relying on the accelerated procedure to regain possession. If the notices are incorrectly served, there will be delays and additional costs that the landlord may seek to recoup from their agent.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">7. Make sure tenants know the landlord – Tell them if there are any mortgage or other outgoings at the start of the tenancy and your attitude to risk if the tenant was to default. It takes approximately eight weeks from a possession claim being issued to an order being made – as a landlord can you afford this situation? A Legal Expenses and Rent insurance policy from a specialist supplier may be the solution.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">8. Know your tenant – landlords should maintain contact with the tenant, to establish why the rent is late or unpaid. It will improve the landlords chances of a successful outcome.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">9. Making an insurance claim – contact the insurers at the earliest opportunity and follow their claims procedures.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">10. Keep a record of all payments, transactions and missed payments – If a case does go to court landlords will need to have all the paperwork to prove that rental payments are not being made, or if they are not being made on time. This will act as vital evidence in your case against a tenant.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">FreshStart Living specialise in developing affordable residential and student properties in the UK which are sold on as buy-to-let property investments to investors all over the world.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">The company offers&nbsp;property investment&nbsp;opportunities starting at just £29,950 with guaranteed rental yields for up to ten years.</div>Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com14tag:blogger.com,1999:blog-3544519505537593156.post-54150743668772615672012-06-25T06:43:00.001-07:002012-06-25T06:43:53.161-07:00Paris Top Spot for Student Property<br /><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Paris has narrowly beaten London to be ranked as the top spot for investors in&nbsp;student property.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Knight Frank has compiled a report looking at the investment potential of European cities popular with students.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">London missed out on the top spot for student housing due to the high cost of living, according to the Knight Frank research; it is followed by Vienna, Dublin and Barcelona.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">James Pullan, head of student property, Knight Frank, commented: “Student accommodation in the UK has delivered solid and consistent returns throughout every year of the economic downturn, thereby attracting significant volumes of international equity and institutional debt into the sector.”</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">The number of students travelling overseas to attend university has been rising steadily in recent decades, and this trend is set to continue. Just as the world’s economies have become more globalised, with the relaxation of trade barriers, education has also become a global commodity.</div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">Students now seek out the best educational institutions across the globe. The factors that lie behind this trend are:&nbsp;</div><ul class="releaseul" style="border: 0px; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; list-style-type: none; margin: 0px 0px 1em; padding: 0px;"><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">the rise of the middle classes in emerging economies, especially Asia;</li><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">the growing acceptance of international higher education qualifications across the world;</li><li style="background-image: url(http://uk.prweb.com/images/bullet.gif); background-position: 0px 0.5em; background-repeat: no-repeat no-repeat; border: 0px; list-style-type: none; margin: 0.5em 0px; padding: 0px 0px 0px 1em;">a new ‘internet generation’ of globally connected and well-informed student consumers</li></ul><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;"></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 15px; padding: 4px 0px;">James Pullan commented: “The rise in global student mobility has created an excellent opportunity for investment in key European cities and is a long-term trend that is set to continue. This structural shift in the make-up of student populations has significant consequences for cities that play host to the world’s best universities, and throws up key opportunities for developers and operators.”</div>Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com9tag:blogger.com,1999:blog-3544519505537593156.post-72146184402062461682012-04-20T02:18:00.000-07:002012-04-20T02:19:27.132-07:00Das: Debt Arrangement scheme.<p class="MsoNormal" style="font-size: 100%; line-height: 12.75pt; "><span style="color: rgb(97, 94, 92); font-family: Arial, sans-serif; font-size: 10pt; line-height: 12.75pt; ">What you do to get out of debt can be one of the hardest decisions you will ever have to make, the first thing we always advice is to get free debt advice from a charity. Be aware of all the options that are available to you and your own personnel situation. For some there creditors start to push for the debt to be repaid if you are able to do this though need a little extra time then the Debt Arrangement Scheme (DAS) is the option that will let you do just that.</span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><b><span style="font-size:10.0pt; mso-bidi-font-size:11.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: &quot;Times New Roman&quot;;color:#000099;mso-fareast-language:EN-GB">What is a DAS?</span></b><b><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: &quot;Times New Roman&quot;;color:#000099;mso-fareast-language:EN-GB"><o:p></o:p></span></b></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">If you have two or more debts and know you could pay them back in full then this is the debt management tool for you. The reasons are varied for having to use a DAS it could be you have suffered from ill health and are just returning to work or you could have been made redundant from a well paid job as long as you are confident that things are going to better and that you are able to pay off your debt. Then a DAS is for you.<o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">You set up a (DPP) debt payment plan with the help of a trained money advisor this will be based on your current financial situation, they will approach your creditors to get there approval. The amount of money you have available each month is split fairly between each creditor, though it is usually less than what you are contracted to pay them. <o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">Once the offer has been put to your creditors they have 21 days to respond. If you do not hear from them you can assume they are happy to go ahead. If some of your creditors do disagree it does not necessarily mean you that that your DDP won’t go ahead. As long as your payment plan is fair and reasonable your money advisor will to the debt arrangement scheme for approval. Once it has been approved you will make one monthly payment to a payment distributer who will ensure that each payment is made on time to the creditors. At this stage your creditors cannot arrest your earnings or make you bankrupt.<o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">A creditor’s objection would be upheld if they believed you would not be able to repay and that sequestration is the only option or if you had equity in property that could be liquidated to pay creditors.<o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><b><span style="font-size:10.0pt;mso-bidi-font-size:11.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;; color:#000099;mso-fareast-language:EN-GB">If circumstances change what happens?<o:p></o:p></span></b></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">A DAS has been set up to be very flexible; if circumstances do change with more or less income then your money advisor will change the payments by either decreasing them or increasing them.<o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><b><span style="font-size:10.0pt; mso-bidi-font-size:11.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: &quot;Times New Roman&quot;;color:#000099;mso-fareast-language:EN-GB">I have mortgage arrears what happens to them?</span></b><b><span style="font-size:10.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;; color:#000099;mso-fareast-language:EN-GB"><o:p></o:p></span></b></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">The DAS covers mortgage arrears however you must still be able to meet your regular mortgage payments. Your normal monthly payments cannot be included in your DDP. <o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">However your creditors can still take you to court and try to force repossession, however by applying for a section 2 you can delay this process. The court will take into account your effort to pay them through your DDP. As the arrears are being paid through your DDP the court is not allowed to grant a payment order on arrears. <o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><b><span style="font-size:10.0pt; mso-bidi-font-size:11.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: &quot;Times New Roman&quot;;color:#000099;mso-fareast-language:EN-GB">Will my family and friends know I am in a DAS?</span></b><b><span style="font-size:10.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;; color:#000099;mso-fareast-language:EN-GB"><o:p></o:p></span></b></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; line-height: 12.75pt; "><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:&quot;Times New Roman&quot;;color:#615E5C;mso-fareast-language: EN-GB">It is theoretically possible for anyone to find out; there is a debt arrangement Scheme register which is publicly available. However it is not the sort of database you would just happen to find people would have to be aware how to go there and then search for your name. If you don’t tell them about it is very unlikely they would just stumble on it. <o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; "><span style="font-size:10.0pt;mso-bidi-font-size:11.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;; color:#615E5C;mso-fareast-language:EN-GB">Entering a DDP will affect your credit rating.<o:p></o:p></span></p> <p class="MsoNormal" style="font-weight: normal; font-family: Georgia, serif; font-size: 100%; "><span style="font-size:10.0pt;mso-bidi-font-size:11.0pt; font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;; color:#615E5C;mso-fareast-language:EN-GB">Before entering any debt solution we always recommend that you seek professional debt advice we recommend that you contact a registered charity who will give you the best advice to suit your own personnel situation.</span></p>Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com9tag:blogger.com,1999:blog-3544519505537593156.post-71572505721616236652012-01-25T07:00:00.000-08:002012-01-25T07:01:14.669-08:00Wonga branded ‘morally offensive’This Article Was Removed from Wonga Site On 19/01/2012<br />Wonga a payday loan firm has caused outrage by encouraging student to help fund their studies by taking out one of their very expensive loans.<br /><br />This is a trick from Wonga and anyone who falls for it could find themselves in mountains of debt. It is far wiser to keep to more traditional borrowing.<br /><br />The firms (APR) annual percentage rate is 4,214% typically, and a £300 loan paid back within 20 days would cost £65 in fees, if repayments are late the fees can be huge.<br /><br />In comparison a student loan has an (APR) of 1.5% though this may not be a fair comparison as a payday loan is meant to only be short term not annually.<br />Wonga said on its website: "A student loan is fine to help you pay for your university and living costs, but what about those times when you're waiting on money to come in and you need to buy or pay for something unexpected now?<br />"There's a totally new way of borrowing money to see you through until your next cheque and it's called Wonga. <br /><br />"A Wonga loan is essentially a short-term loan that can help you manage your cash flow, without having to extend an overdraft or credit card even further, or get a large student loan."<br /><br />Are they not aware that many students do not have a pay cheque coming? And surely this must be encouraging students to get even deeper in debt.. <br /><br /><span style="font-weight:bold;">Surely This Is Wrong</span><br /><br />Wonga were asked to remove this from their page. They said they had put it there for SEO purposes rather than to target students.<br /><br />They would do this so they would appear high in search engines when people on the web were looking for student loans. <br /><br />With student loans you only need to repay them when you earn over £15, 000, 00 and you repay in proportion to your income. There are no debt collectors and it does not go on your credit file. <br /><br />The interest rate on a student loan will never be higher than the rate of inflation". Compare that to the 4,214% Wonga charges.<br /><br />Nobody should sell high priced credit to Students.<br />There is no financial education in schools and as a nation we are in enough financial difficulty without encouraging even more .<br />Wonga took this off their site 0n 18/01/2012 let’s hope no students were taken in by it.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com8tag:blogger.com,1999:blog-3544519505537593156.post-56963744015024766862012-01-25T06:58:00.000-08:002012-01-25T06:59:23.857-08:00Staff at British gas suffering abuse from public over energy costsBritish Gas Managing director Phil Bentley has admitted his staff are facing the brunt of public anger from people struggling to pay their gas and electricity bills.<br /><br />The company boss admitted his staffs was being deluged with increasingly aggressive complaints about rising energy bills. Workers on the road have also been the target for abuse in recent times.<br /><br />The groundswell of anger has increased substantially as British Gas continues to refuse to pass on the reduction in the wholesale gas price to its 9.2 million customers.<br />Since the wholesale price of gas has dropped 9.4% it has come as a surprise to many that British Gas has not reduced bills to their customers for gas although they have reduced their electricity bills by 5%.<br /><br />Phil Bentley admitted in a staff email:”We have seen a groundswell of anti-British Gas comments, with increasingly aggressive tones. All our call centres are under extreme pressure from more angry customers struggling to pay bills”<br />Rather surprisingly the Managing director points the finger at the media for customer anger by claiming they have exaggerated the price increases customers are experiencing.<br /><br />His email continued: “There is no doubt in my mind that the energy industry is facing a crisis-a crisis of affordability, a crisis of investor confidence, a crisis of relentless media criticism, in short a crisis of trust”.<br />It is to be hoped that British Gas bow to public pressure and gives their customers a much needed reduction in their gas bills sooner than later.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com5tag:blogger.com,1999:blog-3544519505537593156.post-70055758670860521052012-01-13T03:28:00.000-08:002012-01-13T04:06:39.342-08:00True Story: Being In DebtI don’t like telling my story, embarrassment, shame or worse still that look of pity that glares back at me. That’s why I found making a telephone call a lot easier there would be no looks just a voice.<br /><br />How have I got here, a few years ago my life was so different I was married, 2 lovely children a beautiful home. The holidays were great any less than two a year and I would grumble, the restaurants I would frequent were varied and often and I never left without giving a generous tip. I kept myself trim at the gym and enjoyed the friendships I made within this world. My car was my hobby new one every two years I kept it immaculate, the children drove me mad when I saw them entering any of my vehicles with sweets!<br /><br />So why am I here? When asked the reason I am in this situation what is the correct answer? When my business collapsed I wasn’t scared, it wasn’t my fault the economy has affected a lot of people, spending cuts meant my company which was selling handmade designer furniture was no longer a priority. It was a LTD company so this meant I was not personally liable for the debt I would walk away, I could start again, I had started a business before there was nothing to say I couldn’t do it again. I had my savings they would keep all the bills paid till I began my new venture.<br /><br />I never thought of my mortgage as a debt more of an investment, I never thought that technically I didn’t own my house the bank did! For me credit cards were wonderful you got what you wanted when you wanted it then pay it when your wages came in no problem. I had been brought up in a generation when credit was how we all lived we were taught buy now pay later. The occasional personnel loan had helped, my wife had been desperate for that conservatory and the kitchen was unique.<br /><br />The savings didn’t last long and the pressure was immense the arguments at home grew more intense. I don’t remember who said what but I do remember that feeling of utter despair as I walked out the door with my worldly belongings in a case. It wasn’t amicable our divorce, the house was sold with negative equity. We fought over everything the biggest losers as is in most cases were my wonderful children.<br /><br />Today I am one of millions claiming jobseekers allowance, living in rented accommodation and trying to survive never mind repaying the debt.<br /><br />If I could help anyone it is to say always think twice when getting credit you do have to pay it back.<br /><br />If you have a debt problem UK Debt Helper is not an advice agency. We advise you speak to a <a href="http://www.debtsupporttrust.org.uk">free debt advice charity </a>such as Debt Support Trust or the Citizens Advice Bureau.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com6tag:blogger.com,1999:blog-3544519505537593156.post-44938254640470877222012-01-12T07:22:00.000-08:002012-01-12T07:23:11.414-08:00Time for a financial health checkWith finances being stretched as never before many of us will be putting household, leisure and entertainment expenditure under the microscope in 2012.<br /><br />The family of parenting institute has warned that the average income of households with children will fall by 4.2% between 2012-2016.This equates to a drop in household income of £1250 per year. <br /><br />For many households this will mean cut backs have to be made in order to square the household budget. For some households this will mean luxuries like gym membership, full Sky package or private healthcare will have to be trimmed or cut out completely.<br /><br />One useful way to give your finances a health check is to break down your bank statement and credit card bill to help identify where your money goes on a monthly basis. <br /><br />Priority debts are exactly that and must be paid before other expenses are taken into account .Priority debts would include expenditure like mortgage, rent, council tax and utility bills. <br /><br />Having deducted priority debts from salaries etc you are left with disposable income to cover food, loans, credit cards etc.This will then give a clear picture to your household financial health.<br /><br />If there is insufficient money to repay personal loans or credit cards etc then it is probably time to seek advice from a debt advice organisation in order to help identify all appropriate solutions available.<br /><br />Even if your income and expenditure balance it is worthwhile looking carefully at your expenditure to ensure you are getting the best value for money possible. Utility company tariffs vary considerably for instance and using a comparison website like USwitch could make substantial savings to your energy bills with very little effort on your part.<br /><br />In summary, as peoples financial belt has to tighten make sure you are getting best value for every pound you spend and where you can get debts down as fast as possible or ideally become debt free.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com6tag:blogger.com,1999:blog-3544519505537593156.post-56730450887575612352012-01-12T07:18:00.000-08:002012-01-12T07:20:18.183-08:00Bankruptcy in ScotlandWhen you here the term "Sequestration" what it means is bankruptcy if you reside in Scotland. To avoid sequestration, a wise option for you could be a protected trust deed.<br />While in a trust deed, you voluntarily transfer all your assets, to a person named your trustee who will use all your assets to pay off your creditors. Put simply it enables you to pay back your debts in an agreed period of time. You make one monthly payment to your trustee this is an affordable amount to you, and after the agreed time any remaining debt is written off. <br /><br />The amount you pay depends on your circumstances and will last for approximately 36months. <br /><br />All trustees must be a qualified practitioner. They are regulated by law and must be members of an approved governing body.<br /><br />You need to know:<br /><br />What you are going into, you are going into a contract to pay back your debts, normally at a reduced rate. Because of this you agree to the below:<br />1 You must do what the Trustee asks.<br />2 You must pay the agreed monthly contributions.<br />3 You cannot take any further credit<br />4 If you receive any money more than £200 you must inform the trustee.<br />All interest and charges will be frozen on the day off signing the Trust Deed.<br /><br /><strong>The Good News About A Trustdeed.</strong><br /><br />1 The trustee will handle all queries from your creditors, so no more phone calls or fear of answering your door.<br /><br />2 It is made to help so will be affordable and can be more flexible compared to sequestration.<br /><br />3 It also does not take away all right to hold certain public offices, which is the case in sequestration.<br /><br />4 It can be possible for some companies to continue trading and some individuals can retain their directorship.<br /><br />5 The fact you enter a trust deed is not published (unlike sequestration).<br /><br />Always make sure you know all the facts before you sign.<br /><br />Entering a trust deed is not to be taken lightly – know all the facts before you sign.<br />Before you sign anything, seek advice preferably from a charity get them to explain what happens and talk you through the process, make sure you know all your options and choose the best option for you.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com7tag:blogger.com,1999:blog-3544519505537593156.post-17358634226287140972011-12-19T08:33:00.000-08:002011-12-19T08:37:39.532-08:00Trust Deed Scotland or Sequestration?<span style="font-weight:bold;">Should i enter a trust deed or opt for sequestration?</span><br /><br />For people who find themselves with acute financial difficulties and mounting debt problems often the solutions available can be daunting. Dependant on the severity of the problem this may result in sequestration (Scotland) or bankruptcy (rest of the UK), this solution is the most extreme and damaging to an individual who selects this route. In this solution your details with be published in a national paper and your information regarding the sequestration can be found with relative ease on the internet. Any assets you have will most probably be sold in order to realise money to pay towards your debts. This is often a most traumatic experience for a person going through this solution and should only be taken when no other option is suitable. This solution would also force through the sale of your property if you own one and if it had equity within the property, again an unpleasant and traumatic experience to be avoided. This solution also has the most damaging impact of all to your credit rating and will take many years to fully recover. This is because you have defaulted on your loans and been unable to make an acceptable monthly payment to your creditors over a period of time as would be the case within a protected trust deed. As with any debt solution qualified professional advice should always be taken before entering a solution and this is certainly the case with sequestration/bankruptcy. There are also limitations as to positions and jobs you can hold for instance you are not permitted to be a company director whilst you are bankrupt.<br /><br /><span style="font-weight:bold;"><br />Scottish Trust Deed</span><br /><br />A Scottish trust deed is another debt solution for people living in Scotland which may be a much better solution. A trust deed or “protected” trust deed lasts for three years and within this time you will contribute as much as you can afford towards your debts. Any outstanding monies due to creditors after the three year period will then be written off and you are free of debt and worry. In order to qualify for a trust deed you must have £10,000 worth of debt and be able to contribute approximately £150 per month. In order to proceed with a trust deed you will require the services of an insolvency practitioner who will complete an income and expenditure in order to identify what assets exist and how much a person can afford to contribute towards their debts.<br /><br />Having completed this exercise the IP would arrange a meeting of your creditors and assuming they accept the proposal your trust deed would become “protected” after 5 weeks. Your IP would be responsible for your financial conduct over the period of your trust deed and takes the title of trustee. Your trustee would carry out regular income and expenditures to ensure you are contributing the appropriate amount to your debts. This means if your financial position changes you may pay more or less towards your agreement.<br /><br />Your trustee is also responsible for the conduct of your creditors throughout the term of the trust deed. This means if any creditor continues to harass you during this period you should advise your trustee who will ensure this stops immediately as this is illegal.<br /><br /><span style="font-weight:bold;"><br />Negatives of a Trust Deed</span><br /><br />There are negatives behind this solution however as during the term of the protected trust deed you are not permitted to take out further credit .Your credit file will also be damaged for a total of 6 years approximately meaning being accepted for credit or a mortgage during this period would be extremely difficult.<br /><br />However to regain control of your finances, be able to answer the telephone and finally get a good night’s sleep once again many people find the positives far outweigh the negatives.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com8tag:blogger.com,1999:blog-3544519505537593156.post-4816182326117412952011-12-15T00:50:00.000-08:002011-12-15T00:51:46.925-08:00Debt Management Vs Trust DeedThere are many different reasons people consider opting for a Scottish trust deed. Many are keen to avoid sequestration or stop spiralling interest and charges or continued harassment from creditors. Another reason many people consider entering a trust deed is to write off their debt once and for all.<br /><br />Why choose a trust deed to write off debt when you can do the same thing through sequestration? The simple answer is both routes will indeed do this, however sequestration has a more negative impact in the long term in relation to your credit history.<br /><br />Dealing with creditors and debt collecting agencies can to put it mildly be an extremely unpleasant experience and most probably one you are unlikely to forget.<br />A trustee is required to act on your behalf in order to proceed with a Scottish trust deed, who will negotiate on your behalf with your creditors to secure an arrangement affordable to you in order to clear as much of your debt as you can afford over a period of approximately 3 years. <br /><br />You may have considered exploring using a debt management as a good solution to clearing your debt however ,this solution can run for 10,12,or sometimes 15 years dependant on the amount of debt you have and how much you can afford to contribute each month. A trust deed will only last for 3 years on average with any outstanding monies due to creditors being written off at the end of that period.<br /><br />There is also no guarantee within a debt management plan your creditors will stick to your proposal as there is no legal obligation to do so. Equally they are under no obligation to freeze interest and charges as they are in a protected trust deed. <br />Scottish Trust Deeds offer greater flexible to write off debt and there different ways you can hold some assets. If you have equity in your property you may have to release it dependant on how much you have, however after your trust deed has finished, you will write off any debt remaining on your accounts ,at that point you will then be debt free. Your creditors have no legal right to approach you and cannot come back to take anything from you in the future.<br /><br />Whilst entering a Scottish trust deed should not be taken lightly, for many it is the correct solution and an excellent way to regain control over your financial position. And best of all after 3 years you are debt free and ready to move your life on free of the burden of worry.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com10tag:blogger.com,1999:blog-3544519505537593156.post-47478607118973359532011-12-15T00:48:00.000-08:002011-12-15T00:49:58.768-08:00"I'll have one Trust Deed please"<span style="font-weight:bold;">How do i go about entering a trust deed?</span><br /><br />If your financial position has reached a point where managing your debt level and creditors yourself has became impossible you may have decided enough is enough. It is important to know there are solutions available to help you.<br /><br />One solution many people explore is a trust deed, also known as a protected trust deed. The difference between the two is subtle but has an important difference. The key difference between the two is a trust deed does not legally enforce the arrangement on your creditors, put simply this means they can continue to press for payment, add charges and continue to call and write to you. This is far from ideal and serious consideration should be taken before agreeing to enter such a solution. A protected trust deed is different, within this arrangement there is a legally binding agreement between you and most importantly your creditors. This means once a trust deed has become “protected” all interest and charges must be frozen and in addition all contact from your creditors to you directly must cease ,whether that be via numerous telephone calls or a stream of demands coming through your letter box on a daily basis.<br /><br />In order to enter a protected trust deed you must 1st seek independent advice from a reputable debt advice organisation, there are many not for profit organisations who will offer you excellent impartial advice free of charge. Should you decide to proceed with a trust deed you will require an insolvency practitioner to act on your behalf? Your IP will complete a full income and expenditure in order to fully understand your exact financial position .This will also tell the IP how much you can afford to pay towards your debts .Once this work has been carried out your IP will prepare a case explaining your financial position to your creditors. An offer will be made to them which will be the sum of money your IP has identified as being the amount you can reasonably contribute towards your debts on a monthly basis.<br /><br />An advert will be lodged in the Edinburgh Gazette advising creditors you plan to enter a protected trust deed and if there are no objections within 5 weeks your case automatically adopts the status of “protected”.<br /><br />Typically a protected trust deed will last for 3 years and during this period you will be expected to make one monthly payment to your IP,who now becomes known as your trustee, it is the responsibility of your trustee to distribute your payment proportionately and regularly to your creditors. Part of your trustees role is to ensure you pay as much as you can afford towards your debt and to that end your trustee will expect you to co operate fully and disclose any changes of circumstances that will affect the contribution you are making towards your debts .A failure to disclose relevant information can have serious legal implications. Your trustee is also liable however to ensure creditors cease all harassment and if contact has been made then you should advise your trustee immediately who will ensure this stops.<br /><br />After you have complete your protected trust deed all outstanding debts are written off and you are free of any liability to move your life on free of worry and debt.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com7tag:blogger.com,1999:blog-3544519505537593156.post-4896119377602472282011-12-14T01:15:00.000-08:002011-12-14T01:18:58.086-08:00Trust deed: The pros and cons explained<span style="font-weight:bold;">Trust deed, the pros and cons explained</span><br /><br />With no apparent end in sight to the continued downturn in employment coupled with pay freezes and rising bills it goes some way to explaining why more people than ever are exploring solutions to help them get out of debt. One of the solutions available to people who live in Scotland is called a trust deed.<br /><br />A trust deed is only available to people that live in Scotland and was created by Scottish law in order to help people with serious debt problems .It is not as serious or damaging as sequestration which is the Scottish equivalent to bankruptcy as under a protected trust deed you can be a company director, hold a public office position or become self employed. This is not the case with sequestration or bankruptcy.<br />Trust deeds are excellent in certain circumstances for people who for a variety of reasons find they are over exposed to debt and struggling to honour the repayment terms to their creditors. This may be down to you or a family member having a pay cut or a loss of job, possibly even a period of illness.<br /><br />All unsecured loans e.g. credit card ,store card, bank loans, overdraughts and many more can be included within a protected trust deed .Another excellent reason to consider this solution is that all interest and charges become frozen once your trust deed becomes protected meaning your debt stops increasing.<br /><br /><span style="font-weight:bold;">How a Trust Deed works</span><br /><br />A trust deed works by bringing all your debts together and, after insolvency practitioner has completed an income and expenditure identify what is an affordable sum for you to pay on a monthly basis towards your debts.<br /><br />It is the job of the insolvency practitioner to approach your creditors with the proposal on your behalf explaining your financial position and how much you can reasonably pay towards your debts. The IP is also known as your trustee and if the creditors accept the proposal the trustee will be responsible for ensuring you contribute as much as possible towards your debts. The trustee will monitor your income and expenditure throughout the period of the trust deed . The trust deed becomes “protected”5 weeks after the case is published in the Edinburgh Gazette as long as there are no objections or as long as they are less than one third in value or a majority in number.<br /><br />Once the trust deed has become protected all communication/harassment from creditors has to stop which for most people is a blessing in itself. If any creditor continues to harass you then you should contact your trustee and he will ensure this practice stops immediately.<br /><br /><span style="font-weight:bold;">Negatives of a Trust Deed</span><br /><br />The negatives are that you are not allowed to get further credit while you are in your protected trust deed and your credit file will have defaults attached for a period of 6 years .This will make attaining lines of credit difficult even after you complete the trust deed however once 6 years has passed this situation should ease . Your credit rating will be severely affected through the process. <br /><br />Many people find the weight off their shoulders allows them to sleep better at night again and to be able to pick up the phone without fear far outweighs the negatives behind this solution in addition to the fact they know exactly when they will have completed the solution and start to re build their credit file once again.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com7tag:blogger.com,1999:blog-3544519505537593156.post-51172819136938795482011-12-13T07:53:00.001-08:002011-12-13T07:53:53.290-08:00What is a Scottish Protected Trust Deed<span style="font-weight:bold;">What is a Scottish Protected Trust Deed</span><br /><br />A protected trust deed is a debt solution available to people living in Scotland which allows people to avoid the more serious solution of bankruptcy or as it is called in Scotland sequestration. <br /><br />There are clear similarities between a trust deed and an individual Voluntary Arrangement (IVA). Within these solutions you pay as much as you can back to your creditors over a set period of time, at the end of this period any outstanding sums due to your creditors are written off. The typical term of each solution is 3 years for a protected trust deed and 5 years for an IVA. <br /><br />In order for a trust deed to become protected either a third in value or a majority in number must agree to the terms of proposal .The actual proposal is put to your creditors on your behalf by an appointed insolvency practitioner , also called an IP or trustee. Your Trustee must place a notice in the Edinburgh Gazette in order that no creditor can come back at a future date objecting to the petition. All creditors must be informed of your intentions and sent a copy of the Edinburgh Gazette.<br /><br />Your creditors thereafter have 5 weeks to object to your petition before it becomes protected as long as fewer than those with a third of the value of debt object or fewer than a third in number raise objections.<br /><br />A protected trust deed is designed to help people avoid bankruptcy however it is a serious debt solution and should only be used as a means of avoiding bankruptcy. Your credit rating will be affected and obtaining credit will be extremely difficult for a period of 6 years in addition to this you are not permitted to take out credit through the duration of your protected trust deed.<br /><br />There are however many benefits over the most acute of solutions (bankruptcy) namely you will be able to work in a self employed capacity or remain so if you currently are self employed. You will also be able to retain or become a company director through this solution as well as holding public office should you choose. And finally any outstanding amounts due to your creditors after you have completed the solution will be written off.<br /><br />As with any debt solution you should always seek independent and impartial advice in order to allow you to make an informed decision that is best for you. There are several not for profit charities who can offer excellent advice on all debt solutions available who will not charge you for the advice you receive.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com4tag:blogger.com,1999:blog-3544519505537593156.post-16344292689502629072011-12-13T07:49:00.000-08:002011-12-13T07:50:43.361-08:00Scotland Trust Deed England IVAShould you find yourself with serious debt problems the options can appear daunting as you try to find the best solution for your circumstances. In the most acute of financial positions this solution may be bankruptcy or sequestration as it is called in Scotland. This is the most severe of solutions and one that should not be entered into lightly as any assets you have accumulated over time may be sold and any monies accrued paid out to your creditors. Another solution may people opt for is a trust deed or protected trust deed. This solution is available to people living in Scotland. In England, Wales and Northern Ireland they have a different solution called an Individual Voluntary Arrangement scheme or IVA. <br /><br />The principal of both schemes are the same, they are designed to give people who, for a variety of different reasons the opportunity to regain control of their finances and after a period of time approximately (3 years in a protected trust deed and 5 years in an IVA) put the financial trouble behind them. <br /><br />As a trust deed is a legally binding agreement between you and your creditors you must seek appropriate advice from a qualified debt advisor who will discuss the pros and cons in relation to the solution. Should this option be best for you and should you wish to proceed you would be appointed an insolvency practitioner . The role of the (IP) is to manager your case in order for you to enter the trust deed and thereafter through the duration of your protected trust deed. <br /><br />It is the responsibility of the IP to complete an income and expenditure with you. Having done this the IP will identify how much you can reasonably afford to contribute towards your debts whilst ensuring you have sufficient left to lead a basic life for the duration of the solution.<br /><br />The IP will then create a report and arrange a meeting with your creditors in order to seek their approval to the proposal. Assuming your creditors agree to the terms of the arrangement them after a period of approximately 5 weeks your trust deed takes the status of “protected”.<br /><br />Once your trust deed has been protected your creditors are bound by the terms of the trust deed, this means they can no longer contact you directly either by harassing phone calls or by letters. Equally you are bound by the terms of the agreement meaning you must make a monthly payment to your IP, they will then distribute money to your creditors on your behalf.<br /><br />After you have ended the solution any outstanding money due to your creditors is written of and you are free to rebuild your credit rating however you should note that your credit file will reflect you entered a trust deed for a further 3 years before it is removed.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com3tag:blogger.com,1999:blog-3544519505537593156.post-48970693247271699842011-12-13T07:46:00.000-08:002011-12-13T07:47:50.125-08:00Truth about Trust DeedIt is important that you understand exactly what a Scottish Trust Deed is when trying to understand what can go wrong. Ignore adverts telling you how easy it is as they can be misguiding.<br /><br /><span style="font-weight:bold;">What is a Trust Deed?</span><br /><br />A Trust deed is one form of insolvency, similar but not as severe as bankruptcy (sequestration). It is a big step to take and you should consider it carefully. It may not be ideal for you or it may be exactly right for your circumstances. It should always be treated seriously when you have no other route to repay your debt.<br />Some “trust deed advisors” have a financial interest in the trust deed going ahead so we always advise going with a charity. They will give the best advice to suit your own personnel needs and not tell you what you want to hear (they must tell you what you need to hear) do not be rushed into signing.<br /><br />When talking to the debt advisor make sure he explains the “trust deed” correctly some claim they are experts when this is not always the case. Debt advisors at present do not have to hold a professional qualification. Again I express to keep with a charity as you do not want pushy sales people sending you down the wrong path.<br />The worst problem about getting poor advice is failure to inform the clients of the pit falls. The facts are if you have equity in your home or a car as well as your monthly payments you will need to pay over the value of these assets or they could be sold.<br /><br />However if you are the owner of a car or a house this does not mean you should not sign a Scottish trust deed. It just means you should understand the full implications in advance; you need to know exactly what it will mean to you in advance. If you do not understand or will be unable to pay do not sign.<br /><br />You also need to know what will happen if things get any worse or better. If you receive more income you will have to pay some or all of that into your Trust deed. If you win the lottery or inherit you will be required to pay this into your trust deed. If your income reduces or your outgoings go up there is a possibilities they will accept reduced payments, or extended the trust deed.<br /><br />The best advice when entering a trust deed is to make sure you know all the pros and cons receive knowledgeable advice before signing. Take advice from a registered charity.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com3tag:blogger.com,1999:blog-3544519505537593156.post-3919829213467053752011-12-13T07:44:00.000-08:002011-12-13T07:46:10.532-08:00Protected Trust Deed Question<span style="font-weight:bold;">If i enter a protected trust deed what happens to my home?</span><br /><br />Many people who find themselves in financial difficulties are attracted to a debt solution call a trust deed or protected trust deed .The two solutions are very similar however a trust deed takes on a “protected” status once your creditors have agreed to the solution. The proposal to your creditors is put forward by your insolvency practitioner (IP).<br /><br />However a Trust Deed is not suitable for everyone. For instance if own your own property and equity has been identified relating to the house the IP has a duty to find a way to release the equity .The reason for this is due to the fact it is an asset and as such can be used to pay money back to your creditors. If however there is negative or very little equity your property will not be at risk and your trustee can allow future equity to be ring fenced. This means the value of the property is set at the point in time you enter the protected trust deed and not at the end. There is generally a fee applied by the IP in order to waiver any future interest in the property however, this route will give you peace of mind that your home will be safe throughout the duration of your solution. <br /><br />Typically a protected trust deed will last for 3 yrs. You are restricted from taking out further credit during this period and your credit file will reflect the fact you have defaulted on loans/credit cards etc. It also takes approximately 6 years in total before all traces of you entering the solution have been removed from your credit file. During this period you will most likely find obtaining credit is harder usual, however after 6 years you should find this problem eases off. <br /><br />After you have completed your protected trust deed any remaining sums of money due to your creditors will be written off .This is their part of the agreement and allows you to move forward free of debt from that date onwards.<br /><br />For peace of mind and to make sleepless nights a thing of the past entering a protected trust deed is an excellent route out of financial difficulties for many people.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com2tag:blogger.com,1999:blog-3544519505537593156.post-58379995063118119342011-12-13T07:37:00.000-08:002011-12-13T07:44:43.032-08:00Debt Solution: Trust Deed<span style="font-weight:bold;">Debt Solution Scotland</span><br /><br />There is a vast amount of people who have found themselves trapped by debt. For a variety of reasons people who have never lost control of their finances nor consider themselves reckless find themselves unable to meet their obligations on a monthly basis. Often this is due to short time work, withdrawal of overtime, redundancy, illness the list is endless. <br /><br />Whatever the reason the impact on people’s social life, family and relationships tend to suffer as a result of financial pressures. It is often at this point at people start to look at what solutions are available to them in order to regain control of their lives. <br /><br /><span style="font-weight:bold;">Protected Trust Deed</span><br /><br />One solution which may be appropriate is called a Trust Deed or a protected trust deed. This solution is available to people living in Scotland and whilst it is a legally binding arrangement and therefore a formal and serious solution is not as extreme as entering bankruptcy or sequestration as it is called in Scotland. <br /><br />Should a Trust Deed be appropriate for your financial circumstances you have the benefit of knowing how long you will be in the solution for and more importantly when you will have completed the solution .The solution typically lasts for 3 years and thereafter you are debt free meaning you can start to rebuild your credit rating and after a further 3 years all history of you having entered a solution will have been removed from your credit file.<br /><br />A Trust Deed is not suitable for everyone and you should seek advice before considering this as your best option. <br /><br /><span style="font-weight:bold;">How does it work?</span><br /><br />All of your debts all totalled and after an insolvency practitioner has identified how much you can afford to pay to your debts on a monthly basis the IP will then take your payment and proportionately distribute the money to your creditors. This solution lasts for 3 years and any outstanding debt after this period is written off leaving you debt free.<br /><br /><span style="font-weight:bold;">What are the negatives?</span><br /><br />Your credit rating will be affected by defaults marked on your file; this will last for approximately 6 years in total. You cannot take out further credit during the period of your protected trust deed .It is possible for people to discover you have entered a trust deed although this is unlikely and should you have assets you may well be asked to realise any values to pay towards your debts.<br /><br /><span style="font-weight:bold;">What are the positives?</span><br /><br />You will know exactly when your arrangement will finish and you become debt free. Any outstanding money due to your creditors after you have ended the solution will be written off. You can finally answer the door/phone again and best of all you can sleep at night.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com2tag:blogger.com,1999:blog-3544519505537593156.post-35297079229551007562011-12-12T08:08:00.000-08:002011-12-12T08:10:28.396-08:00Effective Way To Get Debt HelpFor people living in Scotland there is a debt solution available to them called a Trust Deed. This is the Scottish equivalent of an Individual Voluntary Arrangement (IVA) It is typically used where you have debts over £10,000.A Trust Deed is regulated by The Bankruptcy (Scotland) Act 1985.<br /><br />A Trust Deed has the benefit of helping the person using this solution to pay off their debts at an affordable level over a period of typically 3yrs. A trustee is appointed to look after both the person in the trust deed and also the creditors.<br />An insolvency practitioner (IP) would carry out a complete income and expenditure to establish a true and accurate statement of affairs .This is done in order to calculate what can reasonably be paid towards the debts. The Trust Deed is thereafter presented by the IP to the creditors for their approval.<br /><br />Two thirds of the creditors must agree to the Trust Deed for it to be accepted and become legally binding. A protected Trust Deed ensures that creditors must stop all interest and charges as well as telephone calls and letters etc and best of all they cannot enforce their debt further.<br /><br /><span style="font-weight:bold;">What is the Benefits of a Trust Deed</span><br /><br />When the Trust Deed has been approved it means that all interest payments and charges become frozen relating to your unsecured debts and no other fees can be added by your creditors. This helps to ensure your debts are kept to a minimum for the duration of the Trust Deed.<br /><br />The duration of a Trust Deed is usually completed in 3 years after which all outstanding debt would be written off. Many people during this period take time to reflect on why their finances became so unmanageable in order to ensure they avoid making the same errors again once they have completed the protected trust deed.<br />One major benefit with a Trust Deed is that (unlike bankruptcy) it is not made public therefore you can keep this information private and no one will know you have entered the solution, which on some lines of employment will ensure you keep your job. Some employers are less than sympathetic to your debt problems.<br /><br />Another benefit to remember when entering a Trust Deed is that your Insolvency Practitioner deals with the whole process on your behalf. They will deal with all correspondence with creditors, thus removing a lot of stress associated with resolving your financial problems.<br /><br />Once the Trust Deed has been approved and all arrangements are in place you will only make one single monthly payment towards your debt.<br /><br />A Trust Deed can be an effective way to resolve serious debt problems, however you should always seek advice from a free debt counselling service to receive all information you require to make an informed decision .Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com3tag:blogger.com,1999:blog-3544519505537593156.post-7766645693483632482011-12-12T08:06:00.000-08:002011-12-12T08:07:51.801-08:00Trust Deed Debt Option<span style="font-weight:bold;">Trust Deed Debt Option</span><br /><br />Throughout Scotland the financial cost of living is taking its toll on many families. The ever increasing household bills and stagnant wages means that many families are falling into financial difficulty.<br /><br />Help is available to help people repay their debts with Government legislation this comes in the form of Trust deed, Debt Arrangement Schemes and Sequestration. For many people they believe there problems are so bad that they are left with little choice but to move abroad, start afresh and walk away from their debt.<br /><br />For many the pressure of being in debt can be too much to bare it affects everyone differently for some the only way out that they can see is to elope this is something they would not normally contemplate but they feel they have little choice. This will cross more people’s minds than you think.<br /><br /><span style="font-weight:bold;">Running Away Is Not The Answer</span><br /><br />Running away or eloping is not a solution that any reputable debt advice company would recommend.<br /><br />In days gone by it was known as a ‘Midnight flit’ and this name came from families leaving there homes in the dead of the night to avoid paying their creditor (landlords or anyone chasing them for money).<br /><br />If you pay nothing to your debt for 6 years and your creditors cannot get hold of you within this time it will eventually become ‘Statue Barred’ and if the creditors manage after this to get hold of you they can make no attempt to contact you because after 6 years it is seen as harassment.<br /><br />The down side is this will be marked on your credit file and should you return to the UK this will have an impact on you should you seek credit.<br />The other things to consider.<br /><br />• Where would you live and work?<br />• Would you be able to communicate?<br /><br />Also remember creditors will go to any length to find you. They will pull out every trick in the book. They may contact family members they will check all addresses they will check goggle can you live with this pressure?<br /><br />They may also trace you abroad though they will be unable to pursue you for the debt it will be a constant reminder of what you have left behind.<br /><br />If you live in Scotland the best thing you can do is contact Debt Support Trust they will help you resolve the Debt this advice is all free.<br /><br />Running away from debt is not something anyone should do if it is a dream keep it as that.Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com2tag:blogger.com,1999:blog-3544519505537593156.post-80812692494858402452011-12-12T07:24:00.000-08:002011-12-12T07:32:47.601-08:00Trust Deed Scotland Advice<span style="font-weight:bold;">Trust Deed Scotland</span><br /><br />Trust deed is a solution for debt though it is available only to people residing in Scotland. It is a solution to people who can repay some but not all off their debt and it is not as damaging as bankruptcy which is still suitable for some who can no longer pay back debt without continuing to pay back more.<br /><br />The words used to describe it are “Scottish trust deed” or a “protected trust deed”.<br />Before signing a person is promising to pay what they can reasonably afford towards their debt on a monthly basis. This amount will be agreed between both parties. Also people with assets (Commonly equity in property) will need to contribute the asset value in to the trust deed in lieu of the asset value.<br /><br />They usually continue for three years, and by the end of the term all funds will have gathered in the trust deed. The funds that have gathered will first pay the fees of the trust deed and then each creditor will receive a dividend. If any creditors do not receive a dividend the debt must be written off legally and the creditors can no longer collect them.<br /><br />For a lot of people in Scotland there disposable income is getting smaller quickly. The price of living has rised dramatically with the price increases in food, gas, electricity and fuel all on the increase. With many wages been frozen and job being lost the pressure to pay debt has never been so high but with money simply not there it is becoming harder and harder to pay the creditors.<br /><br />With mortgage rates at an all time low this does help however this only leads us in to a false sense of security for when they do rise 8 million people will be affected. Putting even more pressure on the household budget.<br />If there is no money left to pay the creditors we are in danger of a "debt spiral". The only way to explain this is using creditors to pay creditors. If this did happen the level of debt will increase rapidly. <br /><br />A trust deed can stop this "debt spiral". The payment into a trust deed depends on an individual’s personal finances and after doing an income and expenditure and taking of priority debt and living cost. Also making sure they have a realistic amount to live day to day without any further borrowing.<br /><br />The golden rule is to seek help as soon as there is a problem always use a charity the sooner you seek help the more options will be available. For some a Trust deed will be the perfect solution it will not suit everyone so seek advice as soon as you foresee problems .Trust Deed & IVA Debthttp://www.blogger.com/profile/01044941887760254102noreply@blogger.com2tag:blogger.com,1999:blog-3544519505537593156.post-20647956009171458822011-12-08T06:20:00.000-08:002011-12-08T06:20:32.518-08:00Reduce Bills With Comparison SiteOne of the best methods to resolving a debt problem is to make sure you are not overspending or missing out on savings. It has never been easier to&nbsp;compare&nbsp;the price of any product or service before making your purchase, with all the new comparison tools at our disposal.<br /><br />Recently people found a way to make money from comparing the price of their shopping after Tesco offered to give people "double the difference" on any product which was cheaper elsewhere. Tesco were forced to pay out hundreds of pounds in some cases because people were able to <a href="http://selectmoneytree.com/">compare store prices</a> so easily.<br /><br />It is even possible to compare prices on the go with&nbsp;different&nbsp;mobile phone apps which mean you don't need to <a href="http://selectmoneytree.com/">compare prices online</a> before you go to the shops.<br /><br />UK Debt Helper has found a really good price comparison website which is easy to use and very friendly. Select &nbsp;<a href="http://selectmoneytree.com/">Money Tree</a>&nbsp;will help you compare investment, insurance or even just a daily shop. You can also enter your details and find a range of ways which you can <a href="http://energy.billreduce.co.uk/">reduce your bill</a>.Debt Advisorhttp://www.blogger.com/profile/10379071258951732801noreply@blogger.com5tag:blogger.com,1999:blog-3544519505537593156.post-26356874337611980332011-09-13T08:09:00.000-07:002011-09-13T08:09:29.046-07:00"Can I enter a Trust Deed"?<b><span style="font-size: small;">The Protected Trust Deed is only available to people living in Scotland with serious debts.&nbsp;</span></b><br /><br /><b><span style="font-size: large;">What is a Trust Deed?</span></b><br /><br />A Trust Deed is a legally binding arrangement between someone in debt and their creditors. A licenced insolvency practitioner is required to administer the solution. The Trust Deed is legally binding which means, if accepted, both you and your creditors would have to adhere to the terms of the Trust Deed for the full period (usually 36 months). The Protected Trust Deed is an insolvency solution for people who cannot afford to pay their contractual obligations to their debt as they fall due. <br /><br />The process to enter a Protected Trust Deed is as follows<br /><ol><li>Contact a debt advice charity to ensure a Protected Trust Deed is the right advice.&nbsp;</li><li>If it is you would need a licenced Insolvency Practitoner to adminster your case (there are a number of insolvency practitioners in Scotland)</li><li>The insolvency practitioner would create a proposal and send it out to all of your creditors. The proposal would include how much you propose to repay and over what period of time</li><li>A notice is placed in the Edinburgh Gazette about your Trust Deed</li><li>After 5 weeks, if less than a 1/3 in value or a majority in number DON'T object to the Trust Deed it will have gained Protection.</li><li>The insolvency company will then register your Protected Trust Deed with the Accountant In Bankruptcy.</li></ol>Each year your insolvency company will review your Protected Trust Deed to ensure the payments are still manageable. The Protected Trust Deed is flexible so your payments can increase as well as decline depending on your available income.<br /><br />You cannot enter a joint Protected Trust Deed as the debt solution is individual. This means a husband and wife would need to enter individual Protected Trust Deed's. The insolvency company may decide to enter one Edinburgh Gazette advert as this would save money on the case.<br /><br /><b><span style="font-size: large;">General criteria to enter a Trust Deed?</span></b><br /><ul><li><span style="font-size: small;">Must owe at least £10,000 of unsecured debt</span></li><li><span style="font-size: small;">Must be able to repay at least 10% of the unsecured debt over 3 years (excluding the insolvency practitioner fees - ranging from £2,000 to £6,000). </span></li><li><span style="font-size: small;"> If your equity from an asset (house, car etc) plus 36 monthly payments is more than your total debt then a Protected Trust Deed would not be the best debt solution.</span></li><li><span style="font-size: small;">You must have at least 2 different creditors.</span>&nbsp; </li></ul><b><span style="font-size: large;">Positives of the Trust Deed?</span></b><br /><br /><span style="font-size: small;"><b>There are positives and negatives to entering a Protected Trust Deed and you should always seek professional advice prior to entering any debt solution. &nbsp;</b></span><b> </b><br /><ul><li><b>Benefit 1:</b> You can make affordable repayments towards your debts instead of trying to rob Peter to pay Paul.</li><li><b>Benefit 2: </b>You will write off some of your debt (typically 50%).</li><li><b>Benefit 3:</b> You can be sure of when the Protected Trust Deed will end (usually 3 years but your insolvency practitioner would inform you of this).</li><li><b>Benefit 4:</b> A Protected Trust Deed is a formal agreement for both you and your creditors which must be adhered to.</li><li><b>Benefit 5</b>: The Insolvency company will manage all creditor correspondence on your behalf.</li><li><b>Benefit 6:</b> Once your Protected Trust Deed has been agreed with your creditors they cannot change their mind at a later date, giving your security and protection.</li></ul><b><span style="font-size: large;">Negatives of the Trust Deed?</span></b><br /><br />The negatives of the Trust Deed should be considered extremely cautiously before proceeding. These include;<br /><ul><li><b>Negative 1:</b> It's legally binding so you will have to continue to make payments to your Protected Trust Deed, even if you don't want to continue.</li><li><b>Negative 2:</b> If you decide to stop paying your Trust Deed your Insolvency Practitioner would have a legal obligation to proceed with Bankruptcy.</li><li><b>Negative 3:</b> You can only include unsecured debts in your Protected Trust Deed - any others, such as your mortgage cannot be concluded. If you fail to maintain payments to secured debts then the items can be repossessed.</li><li><b>Negative 4:</b> A default will be added to your credit file and will last for 6 years.&nbsp;</li><li><b>Negative 5:</b> Your house / flat is typically secure, however any equity would need to be released to enter into the Trust Deed.&nbsp;</li><li><b>Negative 6: </b>You cannot obtain further credit whilst in your Protected Trust Deed.</li></ul><b><span style="font-size: large;">Trust Deed Case Study</span></b><br /><br />Steven (29) and Dawn (31) from Dundee have two children and entered into a Protected Trust Deed. They didn't have a car and they lived in a housing association. Their debt was £15,000 each and they planned to pay £170 each. <br /><br />Evan (43) from Glasgow entered a Protected Trust Deed with £42,000 debt and a disposable income of £350. Evan also had equity in his property of £7,000 which he had to release via remortgage. In 3 years Evan will be debt free and discharged from his Protected Trust Deed. <br /><br /><span style="font-size: large;">Keywords to find this page&nbsp;</span><br /><ul><li><span style="font-size: large;"><span style="font-size: small;">inurl:"Trust Deed" "Blog"</span></span></li><li><span style="font-size: large;"><span style="font-size: small;">inurl: "Trust Deed" keyword Trust Deed</span></span></li><li><span style="font-size: large;"><span style="font-size: small;">Protected Trust Deed blog</span></span></li><li><span style="font-size: large;"><span style="font-size: small;">inurl: "Trust Deed Dofollow" </span></span></li></ul><span style="font-size: large;"><span style="font-size: small;"><span style="font-size: large;">Top Trust Deed Areas</span></span></span><br /><ul><li><span style="font-size: small;">Glasgow</span></li><li><span style="font-size: small;">Edinburgh</span></li><li><span style="font-size: small;">Dundee</span></li><li><span style="font-size: small;">Falkirk</span></li><li><span style="font-size: small;">Inverkeithing</span></li><li><span style="font-size: small;">Stirling</span></li><li><span style="font-size: small;">Aberdeen</span></li><li><span style="font-size: large;"><span style="font-size: small;"><span style="font-size: small;">Kelso</span></span></span></li></ul>Debt Advisorhttp://www.blogger.com/profile/10379071258951732801noreply@blogger.com11tag:blogger.com,1999:blog-3544519505537593156.post-80811163345050807962011-09-08T10:52:00.000-07:002011-09-08T10:52:43.771-07:00Equity Release: Debt SolutionA debt charity has warned that&nbsp;over 55's are increasingly turning to equity&nbsp;release schemes in a bid to repay their credit card, personal loans and other debts which are unsecured. The CCCS found&nbsp;the average debt to be just under £23,000.<br /><br />As personal budgets are squeezed ever tighter the outcome for consumers is bleak. Rising costs of electricity, gas, fuel and as expected an interest rate rise, are likely create a devastating strain on UK consumers.<br /><br />The equity release scheme is one option to gain access to the capital tied up in an asset, such as a house. This option enables the person in debt to use the cash now and repay it within their mortgage. One benefit of the equity release scheme <br /><br /><strong><span style="font-size: x-large;">Problems with Equity Release</span></strong><br /><br />There are problems with equity release, especially for people nearing retirement, as they will have a larger mortgage to repay and fewer working years to be able to manage the repayments. In the end, it could mean downsizing and selling the property with the potential future outcome of renting. <br /><br />Also, whilst the equity release service from the CCCS is free to use, it requires a mortgage lender willing to provide the capital. The unsteady market conditions means releasing equity is very difficult, especially for people with defaults or arrears.<br /><br />Be aware, with equity release schemes you are&nbsp;changing one debt which is unsecured (credit card, store cards, personal loans etc) for other secured debt (on your mortgage). You are not clearing the debt, just&nbsp;including it&nbsp;within&nbsp;your mortgage. <br /><br /><strong><span style="font-size: x-large;">Full Debt Advice</span></strong><br /><br />It's essential people get full and honest debt advice before they take action and decide to release equity from their house. Planning for the future is essential. For example, somebody with a debt of £22,000 and a disposable income each month of £300 could be debt free in just over 6 years (if interest and charges were frozen, oh, and if they don't use a fee-charging debt management company!!). The decision is ultimately the consumers, but they could choose a debt management plan or an equity release option to resolve their debt problems.Debt Advisorhttp://www.blogger.com/profile/10379071258951732801noreply@blogger.com2